U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  FORM 10-QSB

(Mark  One)

 X    QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR 15(D) OF THE SECURITIES
---   EXCHANGE  ACT  OF  1934

     For  the  quarterly  period  ended:  September  30,  2002
                                         ---------------------

      TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR 15(D) OF THE SECURITIES
---   EXCHANGE  ACT  OF  1934

     For  the  transition  period  from  _______________  to  ________________

                        Commission file number: 33-43317
                                               ---------

                              EASTON BANCORP, INC.
                              --------------------
        (Exact name of small business issuer as specified in its charter)

             Maryland                                    52-1745344
           ------------                               -----------------
     (State of incorporation)               (I.R.S. Employer Identification No.)

                  501 Idlewild Avenue, Easton, Maryland  21601
                  --------------------------------------------
                    (Address of principal executive offices)

                                 (410) 819-0300
                                 --------------
                           (Issuer's telephone number)

                                 Not Applicable
                                 --------------
   (Former name, former address and former fiscal year, if changed since last
                                    report)


     State  the  number of shares outstanding of each of the issuer's classes of
common  equity,  as  of  the  latest  practicable  date:

     On November 1, 2002, 560,318 shares of the issuer's common stock, par value
$.10  per  share,  were  issued  and  outstanding.

     Transitional Small Business Disclosure Format (check one): Yes No X


<PAGE>
                                     PART I
                              FINANCIAL INFORMATION

ITEM  1.  FINANCIAL  STATEMENTS.

<TABLE>
<CAPTION>
                      EASTON BANCORP, INC. AND SUBSIDIARY
                          CONSOLIDATED BALANCE SHEETS
                                  (Unaudited)

                                                 September 30, December 31,
                                                      2002        2001
                                                  -----------  -----------
<S>                                               <C>          <C>
                            ASSETS
Cash and due from banks                           $ 2,161,001  $ 1,415,318
Federal funds sold                                  3,428,984    4,831,188
Investment in Federal Home Loan Bank stock            431,500      431,500
Investment securities available-for-sale            5,166,213    5,931,871
Loans held for sale                                 1,603,217      622,000
Loans, less allowance for credit losses of
  $862,162 and $750,768, respectively              69,402,713   63,044,907
Premises and equipment, net                         1,592,158    1,624,379
Accrued interest receivable                           386,302      432,134
Bank Owned Life Insurance Policy                    1,320,976    1,281,871
Deferred and prepaid income taxes                      11,813       70,262
Other assets                                          135,440      135,173
                                                  -----------  -----------
      Total assets                                $85,640,317  $79,820,603
                                                  ===========  ===========

      LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
  Noninterest-bearing                             $ 9,213,696  $ 6,600,971
  Interest-bearing                                 67,775,373   64,854,285
                                                  -----------  -----------
      Total deposits                               76,989,069   71,455,256
Accrued interest payable                              117,701      112,507
Securities sold under agreements to repurchase         62,326       65,486
Note payable                                        2,217,121    2,222,875
Other liabilities                                     184,835      149,775
                                                  -----------  -----------
      Total liabilities                            79,571,052   74,005,899
                                                  -----------  -----------

Stockholders' equity
  Common stock, par value $.10 per share;
    authorized 5,000,000 shares, 560,318
    shares issued and outstanding                      56,032       56,032
  Additional paid-in-capital                        5,227,487    5,227,487
  Retained earnings                                   708,430      496,104
                                                  -----------  -----------
                                                    5,991,949    5,779,623
  Accumulated other comprehensive income               77,316       35,081
                                                 -----------  -----------
      Total stockholders' equity                    6,069,265    5,814,704
                                                  -----------  -----------
      Total liabilities and stockholders' equity  $85,640,317  $79,820,603
                                                  ===========  ===========
<FN>
See accompanying Notes to Consolidated Financial Statements.
</TABLE>


                                        1
<PAGE>
<TABLE>
<CAPTION>
                            EASTON BANCORP, INC. AND SUBSIDIARY
                             CONSOLIDATED STATEMENTS OF INCOME
                                        (Unaudited)

                                          Three Months Ended           Nine Months Ended
                                              September 30,               September 30,
                                     ------------------------------  ----------------------
                                          2002            2001          2002        2001
                                     --------------  --------------  ----------  ----------
<S>                                  <C>             <C>             <C>         <C>
Interest revenue
  Loans, including fees              $    1,237,971  $    1,290,529  $3,603,409  $3,826,773
  Investment securities                      63,824          61,912     203,741     194,463
  Due from banks                                -0-             -0-         -0-         496
  Federal funds sold                         11,620          29,443      40,420      93,782
                                     --------------  --------------  ----------  ----------
    Total interest revenue                1,313,415       1,381,884   3,847,570   4,115,514

Interest expense                            478,489         682,549   1,507,920   2,068,808
                                     --------------  --------------  ----------  ----------

    Net interest income                     834,926         699,335   2,339,650   2,046,706

Provision for loan losses                    53,088          79,814     158,991     184,202
                                     --------------  --------------  ----------  ----------

    Net interest income after
        provision for loan losses           781,838         619,521   2,180,659   1,862,504
                                     --------------  --------------  ----------  ----------

Other operating revenue                     151,197         169,089     439,616     416,466
                                     --------------  --------------  ----------  ----------

Other expenses
  Salaries and benefits                     396,652         365,791   1,129,042   1,066,555
  Occupancy                                  42,377          34,936     116,454     108,513
  Furniture and equipment                    35,232          30,577     107,709      88,541
  Other operating                           194,328         180,350     597,633     550,579
                                     --------------  --------------  ----------  ----------
    Total operating expenses                668,589         611,654   1,950,838   1,814,188
                                     --------------  --------------  ----------  ----------

Income before income taxes                  264,446         176,956     669,437     464,782

Income taxes                                106,800          83,308     261,000     195,000
                                     --------------  --------------  ----------  ----------

Net income                           $      157,646  $       93,648  $  408,437  $  269,782
                                     ==============  ==============  ==========  ==========

Earnings per common share - basic    $         0.28  $         0.17  $     0.73  $     0.48
                                     ==============  ==============  ==========  ==========

Earnings per common share - diluted  $         0.27  $         0.16  $     0.71  $     0.48
                                     ==============  ==============  ==========  ==========
<FN>
See accompanying Notes to Consolidated Financial Statements.
</TABLE>


                                        2
<PAGE>
<TABLE>
<CAPTION>
                       EASTON  BANCORP,  INC.  AND  SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                                     (Unaudited)

                                                            Nine Months Ended
                                                               September 30,
                                                      ------------------------------
<S>                                                   <C>              <C>
                                                            2002           2001
                                                      ---------------  -------------
CASH FLOWS FROM OPERATING ACTIVITIES
  Interest received                                   $    3,942,693   $  4,084,701
  Other revenue received                                     486,451        411,167
  Cash paid for operating expenses                        (1,839,792)    (1,752,805)
 Loan sales proceeds                                      10,000,232     11,444,549
 Taxes paid                                                 (232,869)      (178,022)
 Loans originated for sale                               (10,981,449)   (11,621,207)
  Interest paid                                           (1,541,831)    (2,083,934)
                                                      ---------------  -------------
                                                            (166,565)       304,449
                                                      ---------------  -------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Cash paid for premises, equipment and software             (82,827)       (80,906)
  Loans originated, net of principal repayments           (6,531,597)    (6,764,539)
  Purchase of investment securities                       (1,122,011)    (3,434,705)
  Proceeds from sales/maturities of investments            1,917,691      4,493,920
  Investment in life insurance                                   -0-     (1,225,000)
  Proceeds from sale of repossessions                            -0-         18,505
  Purchase of Federal Home Loan Bank stock                       -0-       (227,300)
                                                      ---------------  -------------
                                                          (5,818,744)    (7,220,025)
                                                      ---------------  -------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Net increase in time deposits                            5,237,539      6,199,438
  Net increase in other deposits                             296,274      7,237,821
  Net proceeds from other borrowings                          (5,754)        (5,366)
  Net decrease in securities sold under
      agreements to repurchase                                (3,160)        (3,353)
  Dividends paid                                            (196,111)       (84,048)
                                                      ---------------  -------------
                                                           5,328,788     13,344,492
                                                      ---------------  -------------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS        (656,521)     6,428,916
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD           6,246,506      2,527,563
                                                      ---------------  -------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD            $    5,589,985   $  8,956,479
                                                      ===============  =============
</TABLE>


                                        3
<PAGE>
<TABLE>
<CAPTION>
                      EASTON  BANCORP,  INC.  AND  SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
                                    (Unaudited)

                                                               Nine Months Ended
                                                                 September 30,
                                                            -----------------------
                                                               2002         2001
                                                            -----------  ----------
<S>                                                         <C>          <C>
RECONCILIATION OF NET INCOME TO NET CASH
  PROVIDED (USED) BY OPERATING ACTIVITIES

  Net income                                                $  408,437   $ 269,782

  Adjustments to reconcile net income to net cash
   provided (used) by operating activities:
    Depreciation and amortization                              109,312      96,569
    Provision for loan losses                                  158,991     184,202
    (Increase) decrease in accrued interest receivable and
      other assets                                              51,821    (138,279)
    Increase in operating accounts payable and other
      liabilities                                               39,733      81,646
    Increase in deferred loan origination fees                  14,801       9,847
    Decrease in deferred income taxes                           36,692      16,978
    Securities amortization/accretion, net                      33,970         228
    Net proceeds from loan sales                              (981,217)   (176,658)
    Gain on sale of other real estate/repossessions                -0-       1,495
    (Increase) in cash surrender value of life insurance       (39,105)    (41,361)
                                                            -----------  ----------
                                                             ($166,565)  $ 304,449
                                                            ===========  ==========
<FN>
See accompanying Notes to Consolidated Financial Statements.
</TABLE>


                                        4
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

1.   Basis  of  Presentation
     -----------------------

     The  accompanying  unaudited  condensed  financial  statements  have  been
prepared in accordance with generally accepted accounting principles for interim
financial  information  and with the instructions to Form 10-QSB and Item 310(b)
of  Regulation S-B of the Securities and Exchange Commission.  Accordingly, they
do  not include all the information and footnotes required by generally accepted
accounting  principles  for  complete  financial  statements.  In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included.  Operating results for the
nine  months  ended  September  30,  2002, are not necessarily indicative of the
results  that may be expected for the year ended December 31, 2002.  For further
information,  refer  to  the  consolidated  financial  statements  and footnotes
thereto  for  the Company's fiscal year ended December 31, 2001, included in the
Company's  Form  10-KSB  for  the  year  ended  December  31,  2001.

2.   Cash  Flows
     -----------

     For  purposes  of  reporting  cash flows, cash and cash equivalents include
cash  on  hand,  unrestricted  amounts  due from banks, overnight investments in
repurchase  agreements,  and  federal  funds  sold.

3.   Comprehensive  Income
     ---------------------

                                                 Nine Months Ended
                                                  September 30,
                                                ------------------
                                                  2002      2001
                                                --------  --------
     Net Income                                 $408,437  $269,782
     Unrealized gain on investment
       securities available for sale, net of
       income taxes                               42,235    64,717
                                                --------  --------
     Comprehensive Income                       $450,672  $334,499
                                                ========  ========


                                        5
<PAGE>
     This Report contains statements which constitute forward-looking statements
within  the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of  the Securities Exchange Act of 1934.  These statements appear in a number of
places in this Report and include all statements regarding the intent, belief or
current  expectations of the Company, its directors or its officers with respect
to, among other things: (i) the Company's financing plans; (ii) trends affecting
the  Company's financial condition or results of operations; (iii) the Company's
growth  strategy and operating strategy; and (iv) the declaration and payment of
dividends.  Investors are cautioned that any such forward-looking statements are
not  guarantees  of  future performance and involve risks and uncertainties, and
that  actual  results  may  differ  materially  from  those  projected  in  the
forward-looking  statements  as a result of various factors discussed herein and
those  factors  discussed in detail in the Company's filings with the Securities
and  Exchange  Commission.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS.

     Easton  Bancorp,  Inc. (the "Company") was incorporated in Maryland on July
19,  1991,  to become a one-bank holding company by acquiring all of the capital
stock  of Easton Bank & Trust Company (the "Bank") upon its formation.  The Bank
commenced  business  on July 1, 1993, and the only activity of the Company since
then  has  been the ownership and operation of the Bank.  The Bank was organized
as  a nonmember state bank under the laws of the State of Maryland.  The Bank is
engaged  in  a general commercial banking business, emphasizing in its marketing
the  Bank's local management and ownership, from its main office location in its
primary  service  area, Talbot County, Maryland.  During 1999, the Bank opened a
full-service branch office in Denton, Maryland, which is in Caroline County.  In
addition,  during  2001, the Bank opened a full-service branch office in Oxford,
Maryland,  which  is  in Talbot County.  The Bank offers a full range of deposit
services  that  are  typically  available  in  most  banks  and savings and loan
associations,  including  checking  accounts, NOW accounts, savings accounts and
other  time  deposits of various types, ranging from daily money market accounts
to  longer-term  certificates  of deposit.  In addition, the Bank offers certain
retirement  account  services, such as Individual Retirement Accounts.  The Bank
offers a full range of short- to medium-term commercial and personal loans.  The
Bank  also  originates  and  holds  or sells into the secondary market fixed and
variable rate mortgage loans and real estate construction and acquisition loans.
Other  bank  services  include  cash  management  services,  safe deposit boxes,
traveler's  checks,  direct  deposit  of payroll and social security checks, and
automatic  drafts  for  various  accounts.

     The  following  discussion  of  the  financial  condition  and  results  of
operations  of  the  Company  should  be  read in conjunction with the Company's
unaudited  financial  statements  and  related  notes  and  other  statistical
information  included  elsewhere  herein.

Results  of  Operations
-----------------------

     Net  income  for the Company for the three months ended September 30, 2002,
was  $157,646, compared to $93,648 during the corresponding period of 2001.  Net
income  for  the nine months ended September 30, 2002, was $408,437, compared to
$269,782  for  the  corresponding  period  of  2001.

     For  the  first  nine  months of 2002 compared to the same 2001 period, net
interest income increased $292,944 and other operating income increased $23,150;
however, these increases were offset by increases of $136,650 in total operating
expenses  and  $66,000  in income taxes.  The increase in net interest income is
primarily  due  to  declining  interest  rates,  which resulted in a decrease in
interest expense of $560,888 and a decrease in interest earned of $267,944.  The
increase  in  total  operating expenses is attributed to an increase in salaries
and  benefits  of  approximately  $62,487,  an increase of $27,109 in occupancy,
furniture  and equipment and an increase in other operating expenses of $47,054,
due  primarily  to  the  Oxford  branch  which  was  opened  in  November  2001.


                                        6
<PAGE>
     The  following  table depicts interest income on earning assets and related
average  yields  as well as interest expense on interest-bearing liabilities and
related average rates paid for the nine months ended September 30, 2002, and the
year  ended  December  31,  2001:


<TABLE>
<CAPTION>
                                                   CONSOLIDATED                       CONSOLIDATED
                                                   ------------                       ------------
                                    AVERAGE BALANCES, INTEREST, AND YIELDS  AVERAGE BALANCES, INTEREST,AND YIELDS
                                            For the Nine Months Ended               For the Year Ended
                                                September 30, 2002                  December 31, 2001
                                       ----------------------------------  ---------------------------------
                                         Average                             Average
                                         Balance      Interest     Yield     Balance      Interest    Yield
                                       -----------  -------------  ------  -----------  ------------  ------
<S>                                    <C>          <C>            <C>     <C>          <C>           <C>
ASSETS
Federal funds sold                     $ 3,198,723  $     40,420    1.68%  $ 2,954,612  $   111,011    3.76%
Interest-bearing deposits                        -             -       -        14,185          520    3.67%
Investment securities:
  State municipal bonds                     74,821         2,235    3.98%            -            -       -
  U.S. government agency                 5,407,040       184,031    4.54%    4,340,131      247,076    5.69%
  Other                                    431,500        17,475    5.41%      407,241       28,726    7.05%
                                       -----------  -------------  ------  -----------  ------------  ------
    Total investment securities          5,913,361       203,741    4.61%    4,747,372      275,802    5.81%
                                       -----------  -------------  ------  -----------  ------------  ------
Loans:
  Demand and time                       16,588,685       802,364    6.47%   14,348,935    1,156,761    8.06%
  Mortgage                              46,467,015     2,542,405    7.32%   41,727,127    3,538,811    8.48%
  Installment                            3,757,953       258,640    9.20%    3,921,552      370,998    9.46%
                                       -----------  -------------  ------  -----------  ------------  ------
    Total loans                         66,813,653     3,603,409    7.21%   59,997,614    5,066,570    8.44%
Allowance for loan losses                  806,514                             692,655
                                       -----------                         -----------
    Total loans, net of allowance       66,007,138     3,603,410    7.30%   59,304,959    5,066,570    8.54%
                                       -----------  -------------  ------  -----------  ------------  ------
Total interest-earning assets           75,119,222     3,847,570    6.85%   67,021,128    5,453,903    8.14%
                                       -----------  -------------  ------  -----------  ------------  ------
Noninterest-bearing cash                 2,047,298                           1,242,388
Bank premises and equipment              1,639,456                           1,644,342
Other assets                             1,845,496                           1,747,942
                                       -----------                         -----------
      Total assets                     $80,651,473                         $71,655,800
                                       ===========                         ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
  Savings and NOW deposits             $15,180,055  $    130,527    1.15%  $10,714,080  $   203,333    1.90%
  Money market deposits                  6,751,000        68,526    1.36%    9,278,602      226,973    2.45%
  Other time deposits                   41,889,742     1,222,582    3.90%   38,091,737    2,139,492    5.62%
                                       -----------  -------------  ------  -----------  ------------  ------
    Total interest-bearing deposits     63,820,797     1,421,635    2.98%   58,084,419    2,569,798    4.42%
Noninterest-bearing deposits             7,846,204             -       -     5,625,745            -       -
                                       -----------  -------------  ------  -----------  ------------  ------
    Total deposits                      71,667,001     1,421,635    2.65%   63,710,164    2,569,798    4.03%
Borrowed funds                           2,788,988        86,285    4.14%    1,987,899      101,707    5.12%
                                       -----------  -------------  ------  -----------  ------------  ------
                                        74,455,989     1,507,920    2.71%   65,698,063    2,671,505    4.07%
                                                    -------------  ------               ------------  ------
Other liabilities                          308,860                             373,538
Stockholders' equity                     5,886,623                           5,584,199
                                       -----------                         -----------
        Total liabilities and
        Stockholders' equity           $80,651,473                         $71,655,800
                                       ===========                         ===========

Net interest spread                                                 4.14%                              4.07%
                                                                   ======                             ======
Net interest income                                 $  2,339,650                        $ 2,782,398
                                                    =============                       ============
Net margin on interest-earning assets                               4.16%                              4.15%
                                                                   ======                             ======
<FN>
     -------------------------------
     Interest  on  tax-favored  investments  and  loans  are  reported  without
     adjustment  to  provide  a  fully  taxable  equivalent  basis.
</TABLE>


                                        7
<PAGE>
     The  Bank's  loan portfolio (excluding loans for sale) increased from $63.0
million  at  December  31,  2001,  to  $69.4 million at September 30, 2002.  The
Bank's provision for loan losses was $53,088 for the quarter ended September 30,
2002,  and  $158,991  for  the nine months ended September 30, 2002, compared to
$79,814  for  the  quarter  ended  September 30, 2001, and $184,202 for the nine
months  ended  September  30,  2001.

     The  allowance for loan losses was $862,162 at September 30, 2002, or 1.23%
of  total loans, compared to $818,237 at June 30, 2002, or 1.22% of total loans,
and  $750,768  at  December 31, 2001, or 1.18% of total loans.  The level of the
allowance  for  loan  losses  represents management's current estimate of future
losses  in  the  loan  portfolio;  however,  there can be no assurance that loan
losses  in  future periods will not exceed the allowance for loan losses or that
additional  increases  in  the  allowance  will  not  be  required.

     Activity  in  the  allowance  for  loan  losses  is  shown  below:

<TABLE>
<CAPTION>
                           ALLOWANCE  FOR  LOAN  LOSSES

                                               September 30,    December 31,
                                                   2002             2001
                                              ---------------  --------------
<S>                                           <C>              <C>
Balance at beginning of year                  $      750,768   $     645,501

Loan Losses:
  Commercial                                          41,673          19,537
  Real Estate                                          8,000          71,492
  Consumer                                            18,170         104,442
                                              ---------------  --------------
    Total loan losses                                 67,843         195,471
                                              ---------------  --------------

Recoveries on loans previously charged off
  Commercial                                           2,925             200
  Real Estate                                              0          64,550
  Consumer                                            17,321          23,042
                                              ---------------  --------------
    Total loan recoveries                             20,246          87,792
                                              ---------------  --------------

Net loan losses                                       47,597         107,679
Provision for loan losses charged to expense         158,991         212,946
                                              ---------------  --------------
Balance at end of period                      $      862,162   $     750,768
                                              ===============  ==============

Allowance for loan losses to outstanding
  loans at end of period                                1.23%           1.18%

Net charge-offs/(recoveries) to average
  loans - annualized                                    0.07%           0.18%
</TABLE>


                                        8
<PAGE>
<TABLE>
<CAPTION>
                    NON-PERFORMING ASSETS AND PAST-DUE LOANS

      Nonaccrual loans and loans past due 90 days or more are as follows:


                                     September 30,   December 31,
                                          2002           2001
                                     --------------  -------------
<S>                                  <C>             <C>
Nonaccrual
  Commercial                         $      128,750  $     116,106
  Mortgage                                  249,788        213,355
  Installment                                 6,877         23,585
                                     --------------  -------------
                                     $      385,415  $     353,046
                                     ==============  =============

Loans past due ninety days or more,
  still accruing interest            $            0  $     747,907

Total non performing loans           $      385,415  $   1,100,953

Interest not accrued                 $       22,138  $      19,654
</TABLE>


     Total  operating  expenses  increased  $56,935  to $668,589 for the quarter
ended  September  30,  2002,  from  $611,654 for the quarter ended September 30,
2001.  The  increase  was  primarily  related  to  the  increase in salaries and
benefits  of  $30,861,  an  increase  in  occupancy,  furniture and equipment of
$12,096 and an increase in other operating expenses of $13,978.  The increase in
salaries  and  benefits  was  due  to  annual  salary  increases  and additional
personnel.  The  increase  in  occupancy,  furniture  and  equipment  was due to
expenses  related  to  the  opening  of  the  Oxford  Branch  in  November 2001.

     Return  on  average  assets and average equity, on an annualized basis, for
the  quarter  ended  September  30,  2002,  was  .76%  and 10.39%, respectively,
compared  to .60% and 7.81%, respectively, for the same quarter of 2001.  Return
on  average  assets  and  average  equity,  on an annualized basis, for the nine
months  ended  September 30, 2002, was .67% and 9.28%, respectively, compared to
..56%  and  7.68%, respectively, for the same period of 2001.  Earnings per share
on a fully diluted basis for the quarter and the nine months ended September 30,
2002  were $.27 and $.71, respectively, compared to $.16 and $.48, respectively,
for  the  same  periods  of  2001.

     The  Company's  assets ended the third quarter of 2002 at $85.6 million, an
increase  of  $5.8  million,  or  7.3%, from $79.8 million at December 31, 2001.
This increase can be attributed primarily to the increase in the Bank's loans of
$7.3 million offset by a decrease in federal funds sold of $1.4 million.   Total
borrowings  from  the  Federal Home Loan Bank of Atlanta were approximately $2.2
million  at  September  30, 2002, of which $1.6 million were match funded on two
loans  by  the  Bank.

     Management  expects  that  its  2002 income will exceed expenses.  Although
management  expects  that  the  Company's  current  profitability will continue,
future  events,  such  as  an unanticipated deterioration in the loan portfolio,
could  reverse  this trend.  Management's expectations are based on management's
best  judgment and actual results will depend on a number of factors that cannot
be  predicted  with  certainty and thus fulfillment of management's expectations
cannot  be  assured.

Liquidity  and  Sources  of  Capital
------------------------------------

     The  $5.5 million increase in deposits from December 31, 2001, to September
30,  2002,  is  primarily  reflected in the increase in the Bank's loans of $7.3
million.  The  Company's  primary source of liquidity is cash on hand plus short
term  investments.  At  September  30, 2002, the Company's liquid assets totaled


                                        9
<PAGE>
$12.3  million, or 14.3% of total assets, compared to $12.8 million, or 16.0% of
total  assets,  at  December 31, 2001.  Another source of liquidity is the $11.2
million  secured  line of credit the Company has from the Federal Home Loan Bank
of  Atlanta, of which $2.2 million is currently used, and the $750,000 unsecured
line  of  credit  and the $5 million secured line of credit the Company has from
another  correspondent  bank,  of  which  $1,800,000  is pledged.  If additional
liquidity  is  needed,  the  Bank  will  sell  participations  in  its  loans.

     In January 2001, the Company invested in a bank owned life insurance policy
on the life of Jeffrey N. Heflebower, an officer of the Bank.  The beneficiaries
of  the  policy  include  both the Bank and certain heirs of Mr. Heflebower.  To
fund  the  policy,  the  Bank contributed $1,225,000.  Since the purchase of the
policy,  the  cash  surrender  value  of  the policy has increased approximately
$95,976  and  is  now approximately $1,320,976.  The cash surrender value of the
policy  is  not  considered  a  liquid  asset  of  the Company.  The policy also
provides  supplemental  retirement  benefits  for  Mr.  Heflebower.

     The  capital  of the Company and the Bank exceeds all prescribed regulatory
capital  guidelines  at  September  30, 2002.  At September 30, 2002, the Tier 1
leverage  ratio  for  the Bank was 7.21%.  At September 30, 2002, the Bank had a
risk-weighted  total  capital ratio of 9.83%, and a Tier 1 risk-weighted capital
ratio  of  8.58%.  The  Company  expects that its current capital and short-term
investments  will  satisfy  the  Company's cash requirements for the foreseeable
future.  However,  no  assurance  can  be  given in this regard as rapid growth,
deterioration  in  the  loan quality or poor earnings, or a combination of these
factors,  could  change  the  Company's  capital  position in a relatively short
period  of  time.

Dividends
---------

     The Board of Directors declared a $0.05 per share cash dividend and a $0.20
per share special one time only dividend to be paid to shareholders of record as
of  January 31, 2002.  The dividend was paid on February 15, 2002.  On April 29,
2002,  the  Board  of  Directors declared a $0.05 per share cash dividend on the
Company's outstanding shares of stock to be paid to shareholders of record as of
April  30,  2002.  The  dividend was paid on May 15, 2002. On July 29, 2002, the
Board  of  Directors  declared  a $0.05 per share cash dividend on the Company's
outstanding  shares of stock to be paid to shareholders of record as of July 31,
2002.  The  dividend was paid on August 15, 2002. On October 28, 2002, the Board
of  Directors  declared  a  $0.05  per  share  cash  dividend  on  the Company's
outstanding  shares  of stock to be paid to shareholders of record as of October
31,  2002.  The dividend will be paid on November 15, 2002.  The declaration and
payment  of  future  dividends  will  depend upon a number of factors, including
future  earnings,  financial  condition,  cash  needs,  and  general  business
conditions.  If  dividends  should be declared in the future, the amount of such
dividends  presently  cannot  be  estimated  and it cannot be known whether such
dividends  would  continue  for  future  periods.

Market  Risk
------------

     Net  interest income of the Company is one of the most important factors in
evaluating  the financial performance of the Company.  The Company uses interest
sensitivity  analysis  to  determine  the  effect of rate changes.  Net interest
income  is  projected  over  a  one-year  period  to  determine the effect of an
increase  or  decrease  in the prime rate of 100 basis points.  If prime were to
decrease  100  basis  points,  the  Company  would  experience a decrease in net
interest  income  of  $98,680 if all assets and liabilities maturing within that
period  were  adjusted  for the rate change. If prime were to increase 100 basis
points,  the  Company  would  experience  an  increase in net interest income of
$93,355  if all assets and liabilities maturing within that period were adjusted
for  the  rate change. The sensitivity analysis does not consider the likelihood
of  these  rate  changes  nor  whether management's reaction to this rate change
would  be  to  reprice  its  loans  and  deposits.


                                       10
<PAGE>
ITEM 3. CONTROLS AND PROCEDURES.

     Within  ninety  days  prior to the date of this report, the Company carried
out  an  evaluation,  under  the  supervision  and with the participation of its
principal  executive  officer  and  principal  financial  officer,  of  the
effectiveness  of  the design and operation of the Company's disclosure controls
and  procedures.  Based  on this evaluation, the principal executive officer and
principal financial officer concluded that the Company's disclosure controls and
procedures  are  effective  in  timely  alerting  them  to  material information
required  to  be  included in the Company's periodic SEC reports.  The design of
any  system  of  controls  is  based  in part upon certain assumptions about the
likelihood  of future events, and there can be no assurance that any design will
succeed  in  achieving  its  stated goals under all potential future conditions,
regardless  of  how  remote.

     In  addition,  the  Company  reviewed its internal controls, and there have
been  no  significant  changes  in  the  Company's internal controls or in other
factors that could significantly affect those controls subsequent to the date of
the  last  evaluation.


                                     PART II
                                OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

        There  are  no material pending legal proceedings to which the Company
or  the  Bank  is  a  party  or  of  which any of their property is the subject.

ITEM 2. CHANGES IN SECURITIES.

        None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

        Not applicable.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

        There  were  no matters submitted to a vote of security holders during
the  quarter  ended  September  30,  2002.

ITEM 5. OTHER INFORMATION.

        None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

        (a)    Exhibits.

               11.1  Computation of Earnings Per Share.

               99.1  Certification of Principal Executive Officer and Principal
                     Financial Officer

        (b)    Reports  on  Form  8-K.

               There were no reports on Form 8-K filed by the Company during the
               quarter  ended  September  30,  2002.


                                       11
<PAGE>
                                   SIGNATURES


     In  accordance  with  the  requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                               EASTON  BANCORP,  INC.
                                             -----------------------------------
                                                    (Registrant)



Date:    November 8, 2002                 By: /s/ R. Michael S. Menzies, Sr.
       --------------------                  -----------------------------------
                                                  R. Michael S. Menzies, Sr.
                                                  President



Date:    November  8,  2002               By: /s/  Pamela  A.  Mussenden
       --------------------                  -----------------------------------
                                                   Pamela A. Mussenden
                                                   Assistant Treasurer
                                                   (Principal Financial Officer)


                                       12
<PAGE>
                                  CERTIFICATION

I,  R.  Michael  S.  Menzies,  Sr.,  certify  that:

1.   I  have  reviewed  this  quarterly report on Form 10-QSB of Easton Bancorp,
     Inc.;

2.   Based  on  my  knowledge, this quarterly report does not contain any untrue
     statement  of a material fact or omit to state a material fact necessary to
     make  the  statements  made, in light of the circumstances under which such
     statements  were made, not misleading with respect to the period covered by
     this  quarterly  report;

3.   Based  on  my  knowledge,  the  financial  statements,  and other financial
     information  included  in  this  quarterly  report,  fairly  present in all
     material  respects  the financial condition, results of operations and cash
     flows  of  the  registrant  as  of,  and for, the periods presented in this
     quarterly  report;

4.   The  registrant's  other  certifying  officers  and  I  are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in  Exchange  Act  Rules  13a-14  and  15d-14) for the registrant and have:

     a)   Designed  such  disclosure  controls  and  procedures  to  ensure that
          material  information  relating  to  the  registrant,  including  its
          consolidated  subsidiaries, is made known to us by others within those
          entities,  particularly  during  the  period  in  which this quarterly
          report  is  being  prepared;

     b)   Evaluated  the  effectiveness  of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this  quarterly  report  (the  "Evaluation  Date");  and

     c)   Presented  in  this  quarterly  report  our  conclusions  about  the
          effectiveness  of  the disclosure controls and procedures based on our
          evaluation  as  of  the  Evaluation  Date;

5.   The  registrant's  other certifying officers and I have disclosed, based on
     our  most  recent  evaluation,  to  the registrant's auditors and the audit
     committee  of  registrant's  board  of directors (or persons performing the
     equivalent  functions):

     a)   All  significant  deficiencies  in the design or operation of internal
          controls  which  could  adversely  affect  the registrant's ability to
          record,  process,  summarize  and  report  financial  data  and  have
          identified  for  the  registrant's auditors any material weaknesses in
          internal  controls;  and

     b)   Any  fraud, whether or not material, that involves management or other
          employees  who  have  a  significant role in the registrant's internal
          controls;  and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly  report whether or not there were significant changes in internal
     controls  or  in  other  factors  that  could significantly affect internal
     controls  subsequent  to  the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date:     November  8,  2002               /s/  R.  Michael S. Menzies, Sr.
          ------------------               -------------------------------------
                                           R. Michael S. Menzies, Sr., President


                                       13
<PAGE>
                                  CERTIFICATION

I,  Pamela  A.  Mussenden,  certify  that:

1.   I  have  reviewed  this  quarterly report on Form 10-QSB of Easton Bancorp,
     Inc.;

2.   Based  on  my  knowledge, this quarterly report does not contain any untrue
     statement  of a material fact or omit to state a material fact necessary to
     make  the  statements  made, in light of the circumstances under which such
     statements  were made, not misleading with respect to the period covered by
     this  quarterly  report;

3.   Based  on  my  knowledge,  the  financial  statements,  and other financial
     information  included  in  this  quarterly  report,  fairly  present in all
     material  respects  the financial condition, results of operations and cash
     flows  of  the  registrant  as  of,  and for, the periods presented in this
     quarterly  report;

4.   The  registrant's  other  certifying  officers  and  I  are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in  Exchange  Act  Rules  13a-14  and  15d-14) for the registrant and have:

     a)   Designed  such  disclosure  controls  and  procedures  to  ensure that
          material  information  relating  to  the  registrant,  including  its
          consolidated  subsidiaries, is made known to us by others within those
          entities,  particularly  during  the  period  in  which this quarterly
          report  is  being  prepared;

     b)   Evaluated  the  effectiveness  of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this  quarterly  report  (the  "Evaluation  Date");  and

     c)   Presented  in  this  quarterly  report  our  conclusions  about  the
          effectiveness  of  the disclosure controls and procedures based on our
          evaluation  as  of  the  Evaluation  Date;

5.   The  registrant's  other certifying officers and I have disclosed, based on
     our  most  recent  evaluation,  to  the registrant's auditors and the audit
     committee  of  registrant's  board  of directors (or persons performing the
     equivalent  functions):

     a)   All  significant  deficiencies  in the design or operation of internal
          controls  which  could  adversely  affect  the registrant's ability to
          record,  process,  summarize  and  report  financial  data  and  have
          identified  for  the  registrant's auditors any material weaknesses in
          internal  controls;  and

     b)   Any  fraud, whether or not material, that involves management or other
          employees  who  have  a  significant role in the registrant's internal
          controls;  and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly  report whether or not there were significant changes in internal
     controls  or  in  other  factors  that  could significantly affect internal
     controls  subsequent  to  the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date:     November  8,  2002                         /s/  Pamela  A.  Mussenden
          ------------------                         ---------------------------
                                                     Pamela A. Mussenden
                                                     Assistant Treasurer


                                       14
<PAGE>
                                INDEX TO EXHIBITS

Exhibit                                                             Sequential
Number                        Description                          Page Number
------                        -----------                          ------------

11.1          Computation of Earnings Per Share.

99.1          Certification of Principal Executive Officer and Principal
              Financial Officer.


<PAGE>